purchasing power
the amount of goods and services your money will buy
Federal Deposit Insurance Corporation (FDIC)
an organization of the federal government that insures deposits in most banks up to a maximum of $250,000
barter
trading goods and services without using money
currency
paper money and coins used for financial transactions
check
an order to a bank to pay a specified sum to the person or business named
payee
the person or business to whom a check is paid
statement
a bank's written record of all your transactions
checking account
allows depositors to write checks on the balance
check register
a booklet for recording checking account transactions
account balance
the total amount in the account at a specific date
overdraw
writing a check for more than you have in your account
endorsement
your signature on the back of a check acknowledging that you received the cash or transferred your right to the money to someone else
third party check
when you receive a check made out to you and then sign it over to someone else
electronic funds transfer (EFT)
consumer movement of money from one account to another by computer
automated teller machine (ATM)
a dedicated computer terminal that allows you to make most of the financial transactions that a human teller can
personal identification number (PIN)
your secret number that identifies you to the ATM as the owner of the card
direct deposit
employers deposit paychecks into the employee's checking account on payday
debit card
operate like electronic checks; payments are electronically transferred from your checking account to the store's account
automatic withdrawal
an arrangement for your bank to pay bills automatically from your account without needing authorization every time
canceled check
one which the bank indicates has been paid; serves as proof of a transaction
certified check
a personal check that has been stamped and signed by a bank officer guaranteeing that your account has the money to cover it
cashier's check
a bank's own personal check signed by the bank's cashier; payment comes from the bank's own money
money order
a check that draws on the money of a bank or other business that issues it
traveler's check
checks that you pay for in advance and, if they are lost or stolen, the company that you bought them from replaces them; require you to sign when purchasing the checks and when spending the checks
wire transfer
an electronic communication that moves money from an account in one bank to an account in a different bank
safe deposit box
vaults with individual locks that you may rent from a bank whose contents are safe from fire, theft, and loss
inflation
rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling